Refer to Table 14-2. Suppose pricing PlayStations is a repeated game in which Wal-Mart and Target will be selling the game system in competition over a long period of time. In this case, what is the most likely outcome?
A) a noncooperative equilibrium in which each firm charges the high price
B) a noncooperative equilibrium in which each firm charges the low price
C) a cooperative equilibrium in which each firm charges the low price
D) a cooperative equilibrium in which each firm charges the high price
D
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Which of the following statements about recessions is true?
a. An old rule of thumb defining recession is two consecutive quarters of falling nominal GDP. b. Recessions occur at regular intervals and last standard amounts of time. c. There is no ironclad rule for the declaration of recessions. d. Recessions are associated with low unemployment and high income.
How many units would the given profit-maximizing nondiscriminating monopolist produce?
A. 1.
B. 2.
C. 3.
D. 4.